"Jeremy Hunt, the culture secretary, is confident that Britain can outshine China — whose Games were widely hailed as the best ever — despite the fiasco over security and a more modest budget. In an interview with The Sunday Times (£), he described Friday’s opening ceremony as “absolutely stunning”, saying it would “knock us sideways”. “I believe we’ll be better than the Beijing Games. They did a brilliant job, but it was a Games that was playing to China’s strengths, and about China’s role in the modern world. “We have something different to say. London is one of the great global cities — I believe it’s the greatest city on the planet, and this is our chance to showcase that to the whole world,” he said."

The Coalition needs to revive the country’s self-belief – and a successful Olympics would be the ideal start – Matthew d'Ancona in The Sunday Telegraph

Cameron will roll out red carpet for Mitt Romney when Obama's Republican rival flies in for London Olympics – Sun

…meanwhile… The new French President invites Ed Miliband to the Elysée ahead of the David Cameron – Independent on Sunday

Data is expected to confirm third quarter of falling growth

"Britain is suffering the longest double-dip recession since the Second World War, figures are expected to reveal this week. City analysts are predicting official Government data will confirm a third consecutive quarter of decline – making the economic crisis longer than the second wave of recession that blighted the country in the Seventies." – Mail on Sunday

David Smith in The Sunday Times (£) is sceptical about the data: "This continued recession is inconsistent with the strength in the job market. Figures released last week showed the number of people in employment rose by 181,000 in the March-May period, the strongest rise for two years. In spite of public sector cutbacks, employment has increased by a quarter of a million since last autumn while the economy has supposedly been in recession. The unemployment rate has dropped from 8.6% to 8.1%."

22% would like Vince Cable to replace Osborne, 16% would like Hague – YouGov

Fewer than one-quarter of people trust Mr Osborne and David Cameron "to make the right decisions about the economy" – Independent on Sunday

Tory Maria Miller and Lib Dem Jo Swinson are both being lined up for Cabinet posts in the September shake-up

"PM David Cameron is also looking to boost women MPs from the 2010 Tory intake. and former GP Sarah Wollaston, 50. They include health aide Anna Soubry, 55, and former GP Sarah Wollaston, 50. Also in the frame are defence aide Claire Perry, 48, Liz Truss, 36, and Helen Grant, 50. Aides stress talent not gender will be the key factor. But one male Tory MP joked: “I’d have more chance with a sex change.”" – The Sun

Cameron forms Inner Tory Cabinet including Clarke, Duncan Smith, Gove, Hague, Hammond, Osborne and May – James Forsyth in the Mail on Sunday

Graham Brady: Reform the Commons and then reform the Lords

"The Commons should schedule its own business; select committees need more powers and resources to get to the bottom of the misdeeds of banks or government departments; backbench MPs should have a meaningful opportunity to introduce legislation that has wide support. Government should have the self-confidence to allow more “free” unwhipped votes. Once the Commons is flourishing and enjoying the respect of voters, once we have put our own house in order — maybe then we might reform the Lords." – Graham Brady MP in The Sunday Times (£)

The Coalition may relaunch AGAIN (in September) – Kirsty Buchanan in the Sunday Express sets out her wish list for that relaunch

Scots Tories are 'rotten to the core', says ousted Holyrood candidate

"Malcolm Macaskill, whose removal paved the way for new party leader Ruth Davidson to get to Holyrood, got the five-figure pay-out after threatening to sue over the Tories' handling of his sacking. In an interview with the Sunday Herald, Macaskill blasted the Tory machine as "rotten to the core" and said the Scottish party was an "inept and morally corrupt" organisation. Macaskill, a member of the Scottish Tories for 35 years, was top of the party's Glasgow list for last year's Holyrood poll – almost guaranteeing him a seat in Parliament. However, days before the start of the campaign, party bosses removed him from the list amid allegations of historical financial problems." – Sunday Herald

Tory MPs complain at 2.8% increase in EU budget

"Chris Heaton-Harris, the Conservative MP for Daventry and co-founder of the Fresh Start group of Euro-sceptics, said: "The case for reform is greater now than it has ever been. "We are just about to increase the EU budget, and our part of that increase is £350 million. "That would pay a year’s basic salary to at least 18,500 Army privates, the average basic salary to more than 10,500 NHS-qualified nurses, or a year’s basic salary to around 12,500 police constables.” David Nuttall, the MP for Bury North, said: “At a time when we are cutting our budgets here in the UK, the fact is that, whatever happens in the negotiations, those in Europe and Brussels want the European budgets to be increased. Meanwhile, my constituents are seeing their budgets being cut.”" – Quoted in The Sunday Telegraph

The Sunday Telegraph: "Those in power usually look after their own interests better than anyone else’s. The EU is a perfect instance of this universal law: its officials are building themselves a gleaming new office block, complete with gym, restaurants and “majestic entry portal”, at a cost of £350 million: precisely the amount that Britain’s contribution to the EU will have to increase by next year. Britain opposed this payment, but was unable to gather enough EU allies to block it."

The Observer asks Nigel Farage if there could be an alliance with sceptical conservatives…

The UKIP leader replies: "It's not completely impossible there will be some SDP-type moment, a coming together of different people over this one issue. Eventually, this question will have to be resolved." Full profile in The Observer.

A Commonwealth soldier who served for 13 years in the Army has been refused British citizenship – The Sunday Telegraph

"Defence ministers have lined their offices with £150,000 of fine art — while sacking thousands of troops to save cash. The works include A Mediterranean Seaport by 18th Century painter Dominic Serres, worth £50,000, and the 200-year-old A Naval Engagement by Nicholas Pocock, valued at £20,000. They were picked by Defence Secretary Philip Hammond. Equipment minister Peter Luff has the £15,000 Canadian Infantryman by Augustus John." – The Sun

Two hundred and fifty foreign criminals who should have been deported at the end of their prison sentences were allowed to stay in Britain on human rights grounds last year without their claims being challenged in court – The Sunday Telegraph

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